Acct. Chapter 3 Part 1 Review

The source document for all cash payments is a check.

• True

• False

A receipt is the source document for cash received from transactions other than sales.

• True

• False

The accounting concept Unit of Measurement is being applied when a source document is prepared for each transaction.

• True

• False

The source document used when supplies are bought on account is a memorandum.

• True

• False

The journal columns used to record receiving cash from the owner as an investment are Cash Debit and Sales Credit.

• True

• False

To correct an error in a journal, one can simply erase the incorrect item and write the correct item.

• True

• False

A transaction recorded in a journal is not considered a permanent record.

• True

• False

Transactions are recorded in a journal in chronological order.

• True

• False

A complete journal entry consists of the date, the debit amount, the credit amount, and a source document.

• True

• False

When an entry in an amount column is an even dollar amount, either '00' or '--' can be entered in the cents column.

• True

• False